The larger the diameter of a natural gas pipeline is, the lower is the average total cost of transmitting 1,000 cubic feet of gas 1,000 miles. This is an example of one reason for
A. constant returns to scale.
B. economies of scale.
C. diminishing returns to scale.
D. diminishing marginal returns.
Answer: B
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The BP curve presents combinations of y and i that yield balance of trade equilibrium
Indicate whether the statement is true or false
If the interest rate is 4 percent, the present value of $500 received at the end of four years is:
A. $432.68. B. $427.40. C. $431.71. D. $416.41.
Suppose a one-year discount bond offers to pay $1000 in one year and currently sells for $950. Given this information, we know that the interest rate on the bond is
A) 5.3%. B) 9.5%. C) 10%. D) 90%. E) 110%.
The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($1,050); personal consumption expenditures ($4,800); imports ($370); exports ($240); gross private domestic investment ($1,130). Personal consumption expenditures are approximately what percentage of this economy?
A. 60 percent B. 65 percent C. 70 percent D. 75 percent